The payback period for equity shows. Absolute liquidity ratio

Profitability of production

Return on financial investment

Return on enterprise assets

Profitability of production assets

Return on current assets

Overall profitability

This indicator is the most common in determining the profitability of an enterprise and is calculated as the ratio of profit before tax to revenue from the sale of goods, works and services produced by the enterprise.

The indicator indicates what portion of sales revenue is profit before tax, is analyzed over time and compared with the industry average values of this indicator.

Rtotal = P day/V real,

WhereP day -profit before tax;
In real life -revenues from sales.

It is defined as the ratio of net profit (profit after tax) to the current assets of the enterprise. This indicator reflects the company's ability to provide a sufficient amount of profit in relation to the company's working capital used. The higher the value of this ratio, the more efficiently working capital is used.

R both = PE/OA,

WhereEmergency – net profit;

OA – average annual value of current assets.

It is defined as the ratio of balance sheet profit to the average value of the sum of the cost of fixed production assets, intangible assets and working capital as part of inventory.

The level of profitability of production assets is higher, the higher the profitability of products (the higher the capital productivity of fixed assets and the speed of turnover of working capital, the lower the costs per 1 ruble of products and the unit costs of economic elements (equipments, labor materials)).

RPrf = P/PF ,

Where P -profit before tax;
PF –average annual cost of production assets.

Defined as the ratio of net profit to all assets of the enterprise

WhereEmergency –net profit;
WB - balance currency.

It is defined as the ratio of the amount of income from financial investments to the amount of financial investments.

RFV = PFV/PV,

WherePFV –profit of the enterprise from financial investments for the period;
FV –the amount of financial investments.

Production profitability is defined as the ratio of gross profit to production cost.

Rpr-va = VP/SS,

WhereVP –gross profit;
SS – cost of production.

The payback period for equity capital is found by dividing the average annual value of equity capital by the net profit of the analyzed period. This indicator is important for owners and shareholders, since by assessing its value and dynamics, they, as a rule, draw conclusions about the effectiveness of their capital management.

The payback period of equity capital is calculated using the following formula:

SK per.ok = SK/PE,

WhereSK –average cost of equity capital;
Emergency –net profit.

Profitability of core activities

Return on sales

Return on equity

Return on advanced capital.

Accounts receivable collection ratio

Duration of the financial cycle

Operating cycle time

3.2.4. Cost-benefit analysis

The main indicators of this group are indicators of return on advanced capital and return on equity. The economic content of these indicators is to calculate how many rubles of profit per 1 ruble. advanced (own) capital.

You can use either the total profit of the reporting period or the net profit.

The indicators do not have standards.

3.2.5. Indicators of the situation on the securities market

This analysis is performed on companies that are listed on stock exchanges and list their securities there. Financial statements require additional information for analysis.

The given indicators are conditional, since the terminology for securities in the Russian Federation has not yet been fully developed.

Earnings per share. This is the ratio of net profit (NP), reduced by the amount of dividends on preferred shares, to the total number of ordinary shares. It is this indicator that largely influences the market price of shares. A disadvantage in analytical terms is spatial incomparability due to the unequal market value of shares of different companies. Calculation:

accounting data.

Share value. It is calculated as the quotient of the stock's market price divided by its earnings per share. The indicator shows how much investors are currently willing to pay for 1 ruble. earnings per share. The relatively high growth of this indicator over time indicates that investors expect faster profit growth for this company compared to others. Calculation:

Dividend yield of a stock. The ratio of dividend per share to its market price. This indicator characterizes the interest on capital invested in the company's shares. This is a direct effect.

There is also an indirect effect (income or loss), expressed in the measurement of the market price of shares of a given company. Calculation:

accounting and securities market data.

Dividend output. It is calculated by dividing dividends per share by earnings per share.

Interpretation of the indicator is the share of net profit (NP) paid to shareholders in the form of dividends. Associated with this indicator is the profit reinvestment coefficient, which characterizes its share aimed at production development. The sum of the values of this indicator and the profit reinvestment ratio is equal to 1. Calculation:

accounting data.

Stock Quote Ratio. The ratio of the market price of a stock to its book price. The accounting price characterizes the share of equity capital per 1 share. The accounting price consists of the par value of the share, the share of share premium (the accumulated difference between the market price of the shares at the time of sale and their par value) and the share of profit accumulated and invested in the development of the company. A coefficient value greater than 1 means that potential shareholders, when purchasing a share, are willing to give a price for it that exceeds the accounting estimate of the real capital per share at the moment. Calculation.

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2. Profit before tax – takes into account expenses (commercial, administrative and others) not taken into account in gross profit (line 140 of form No. 2).

Profit before tax is the basis for calculating profit tax (20% of profit before tax)

3. Net profit - (line 190 of form No. 2) the result of economic activities and the balance of additional funds of the enterprise after deductions to the budget of net profit - the basis for the formation of enterprise funds and for joint-stock enterprises - the calculation of dividend payments

4. Retained earnings – (line 470, form No. 1) the value increases the amount of the enterprise’s equity capital for the current year. It is defined as profit after settlements with shareholders and accrual from the material incentive fund, as well as loan payments, the due date of payment, which was in the corresponding period

Profitability is a relative indicator characterizing the ratio of profit and costs necessary to obtain it. Profitability characterizes the relative value of the enterprise's operating efficiency. Profitability is assessed using the following ratios:

1. How much net profit is generated for each ruble of products sold?

2. Overall profitability – characterizes the ratio of gross profit to sales revenue. It shows what result of production activities was obtained in each ruble of revenue

3. Return on equity

4. Economic profitability - characterizes the assessment of the production result in relation to each ruble invested in the assets of the enterprise.

Characterizes the efficiency of using all assets of the enterprise in the process of production activities

5. Capital return – characterizing the efficiency of using the enterprise’s general funds (line 190)

6. Profitability of core activities - shows the ratio of gross profit to the amount of production costs incurred

7. Return on operating capital – characterizes the efficiency of capital

8. Economic growth sustainability coefficient - shows the rate at which equity capital increases due to financing of economic activities

Payback period of equity capital

Shows the number of years during which investments of equity capital in a specific enterprise pay off

Estimates the payback period based on the state of the enterprise’s economic activity for the current period.

Analysis of enterprise performance using DuPont models

The model proposed by DuPont represents a comprehensive assessment of the enterprise’s activities with the possibility of conducting factor analysis, i.e. determining the influence of each factor under consideration on the final result, the resulting indicator is the return on equity factor.

Financial risk – the possibility of losses (revenue, equity, profit) in conditions of economic uncertainty

Risk groups:

1. Dependent on the activities of the enterprise

2. Independent of the enterprise’s activities (market/systematic risks)

Types of risks:

1. Specific risks

a. The risk of a decrease in financial stability is caused by an imperfect capital structure, i.e. excessive use of borrowed funds with a high financial leverage ratio

b. The risk of insolvency is associated with the inability to pay contractual obligations within a certain period and is caused by the low liquidity of the enterprise’s assets (i.e. there are no funds in the current account)

c. Investment risk expresses the possibility of losses occurring during the investment process.

2. Components of the IR:

3. - risk of real investment

4. - financial investment risk or portfolio risk

5. - the risk of innovative investment is associated with the implementation of projects to introduce innovations

6. Risk associated with investing venture capital.

7. All of them are associated with a possible loss of capital of the enterprise and are included in the group of the most dangerous

a. Deposit risk reflects the possibility of non-return of deposits or non-repayment of certificates of deposit

b. Credit risk. Banking risk in a commercial enterprise manifests itself as:

8. - risk of non-payment for delivered products

9. - the risk of non-refund of advance payments in case of non-delivery of goods

2. Risks independent of the enterprise’s activities

a. Inflation risks, which are characterized by the possibility of depreciation of the real value of capital in the form of monetary assets, as well as the expected income and profit of the enterprise

a. Interest rate risk. It consists of an unexpected change in the interest rate on the financial market, both deposit and credit. The reason for this risk is changes in financial market conditions under the influence of government regulation. Since July 1, 2009, Central banks cannot independently change the government loan rate without the consent of the borrower.

Refinancing rate - the rate at which a financial bank finances commercial markets

b. Currency risk is associated with foreign economic activity and has 2 aspects:

Risk of choosing the type of currency

Currency fluctuation risk

These risks accompany financial losses during export-import operations

When the exchange rate depreciates, exporters bear losses, and when the exchange rate increases, importers bear losses.

c. Tax risk has a negative impact on financial results and has the following aspects:

Risk of introducing new types of payments

Risk of limiting existing payment rates

Risk of cancellation of tax benefits

Risk of changes in the conditions and timing of tax payments

d. Other types of risks

Risk of untimely execution of settlement and cash transactions

Risk of theft

Emission risk is associated with the fact that shares are sold on the open market at less than the planned share price

Financial risk management policy

The PUFR represents the general part of the organization's strategy to identify and prevent the consequences of risks.

Task

1. absolute liquidity ratio

2. capitalization ratio

3. Payback period of equity capital

4. Return on equity capital – cash – 9,700 thousand rubles; short-term liabilities – 22,100 thousand rubles; long-term liabilities – 6,000 thousand rubles; capital and reserves - 39,000 thousand rubles; profit from ordinary activities – 19,600 thousand rubles.

Task

Based on the following data from the balance sheet of a construction organization, determine:

1. Sales profitability

2. Labor productivity

3. Return on assets

4. Accounts receivable turnover, profit from sales – 50,800 thousand rubles; cost - 120,000 thousand rubles; commercial expenses – 3,200 thousand rubles; administrative expenses – 4,000 thousand rubles; accounts receivable – 990 thousand rubles; sales revenue - 178,000 thousand rubles; fixed assets – 9,900 thousand rubles; s.s.h. – 37 people

Task

Based on the following data from the balance sheet of a construction organization, determine:

1. Financial stability ratio

2. Own working capital

3. Own and long-term borrowed funds

4. Turnover of equity capital, profit from sales – 98,500 thousand rubles; capital and reserves – 42,200 thousand rubles;

long-term liabilities – 2,100 thousand rubles; balance sheet currency – 43,500 thousand rubles; non-current assets – 28,800 thousand rubles.

Task

At the beginning of the reporting period, the value of the current liquidity ratio was 2.4; the value of the equity ratio is 0.6. At the end of the reporting period, the value of the current liquidity ratio is 1.9; the value of the equity ratio is 0.5. Based on these data, draw a conclusion about the state of the balance sheet structure at the beginning and end of the period and calculate the loss ratio or the solvency restoration ratio.

Task

Determine the type of financial stability of the enterprise based on the following data:

Own working capital (SOS) – 162,000 thousand rubles;

Own and long-term borrowed funds (SDZS) – 201,000 thousand rubles;

Main sources of formation of reserves and costs (IOC) – 319,000 thousand rubles;

Inventories and costs (ZiZ) – 274,900 thousand rubles.

Task

Using financial statements data, sell part of low-liquid assets taking into account the discount (finished goods inventories and excess production inventories)

Offer options for rational use of funds received

Task

Using financial statements data, analyze accounts receivable and payable.

Collect part of the receivables through negotiations with each counterparty

Suggest options for the rational use of mobilized funds

Task

Carry out the procedure for a factoring operation or netting scheme (with calculations and description of the transaction)

Task

Carry out the sale of part of the unfinished construction (frozen or unprofitable objects)

Conduct the sale of short-term financial investments (taking into account the discount)

Task

Analyze the need for outsourcing (subcontracting)

Task

Reduce production costs (fixed and variable)

List at what costs and for what reasons this became possible

Task

Convert debts into authorized capital (sale of part of the block of shares)

Outline a scheme for changing the form of ownership

Carry out an additional issue of shares, with an explanation of how and between whom they will be distributed.

Task

Using balance sheet data, carry out debt conversion by converting short-term debt into long-term loans using the refinancing rate.

Show the effect of changing the debt structure

Task

Increasing other income by renting out unused operating systems.

Provide other possible sources of income

Profitability indicators are formed as follows:

where RSiI is the profitability of certain economic assets and their drains; P is profit (net or balance sheet)

Overall profitability

The indicator shows what part of the sales revenue is profit before tax, is analyzed over time and compared with the industry average values of this indicator.

where Pdn - profit before tax Vreal - sales revenue

Return on current assets

where PE is the net profit of the company - the average annual value of current assets

Profitability of production assets

It is defined as the ratio of balance sheet profit to the average value of the sum of the cost of fixed production assets, intangible assets and working capital in inventory.

where P is profit before tax PF is the average annual cost of production assets

Return on enterprise assets

Defined as the ratio of net profit to all assets of the enterprise

where PE - net profit of the World Bank - balance sheet currency

Return on financial investment

It is defined as the ratio of the amount of income from financial investments to the amount of financial investments.

where Pfv is the enterprise’s profit from financial investments for the period FV is the amount of financial investments

Profitability of production

Production profitability is defined as the ratio of gross profit to production cost.

where VP is gross profit CC is production cost

Payback period of equity capital

Payback period of equity capital. It is found by dividing the average annual value of equity capital by the net profit of the analyzed period. It is important for owners and shareholders, since by assessing its value and dynamics, they, as a rule, draw conclusions about the effectiveness of managing their capital.

The payback period of equity capital is calculated using the following formula:

where SK is the average cost of equity capital PE is net profit